India: Ferro chrome prices hold steady amid limited market movement

• Spot supply shrinks, as some sellers focus on fulfilling export orders
  
  
• Buyers stay on sidelines, having booked sufficient material before
  
  

Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices stayed unchanged w-o-w at INR 123,200/t ($1,297/t) exw-Jajpur, as per BigMints assessment on 1 July. Prices remained unchanged as no major changes were observed in the market, and inquiries also stayed low over the week.

Deals for approximately 2,800 t were concluded last week within the price bracket of INR 122,700-126,000/t ($1,292-1,327/t) exw-Jajpur.

Low-silicon high-carbon and low-phosphorus ferro chrome prices went up by INR 1,000/t ($11/t) and INR 800/t ($8/t) w-o-w to INR 129,000/t ($1,358/t) and INR 130,800/t ($1,377/t) exw-Jajpur, respectively. Meanwhile, low-carbon ferro chrome prices declined by INR 1,800/t ($19/t) w-o-w to INR 243,400/t ($2,562/t) exw-Durgapur, respectively.

Market summary (25 June - 1 July)

Limited spot deals keep prices flat: Indian ferro chrome prices held firm during the week despite subdued spot market activity. Deals for around 2,800 t were concluded last week, with nearly half of the traded volume booked through Vedanta-FACOR's auction. Spot transactions remained limited as several major buyers had already secured sufficient material through previous bookings and largely stayed away from the market. With fewer spot inquiries and lower trading volumes, market participants saw little reason to revise offers, keeping prices stable.

Additionally, some suppliers remained occupied with fulfilling pre-booked export orders, reducing the availability of material for domestic spot sales. This balanced demand-supply scenario, coupled with restricted spot participation, contributed to the overall stagnancy in ferro chrome prices during the week.

Stainless steel prices decline amid drop in nickel values: Prices of 304-grade stainless steel hot-rolled coils (HRCs) edged down by INR 1,000/t ($11/t) w-o-w to INR 214,000/t ($2,253/t) exw-Mumbai. The overall market remained weak, with prices declining due to lower nickel prices, weak demand, and cautious buying. Most buyers delayed purchases, expecting further price corrections, while mills remained cautious in procuring raw materials. Prices of both flat and long stainless steel products fell, with 304 and 316 grades witnessing noticeable corrections. Domestic material remained more competitive than imports, supporting local producers.

Export activity also stayed slow due to geopolitical uncertainties and weak overseas demand. Globally, stainless steel markets also remained under pressure as European mills reduced alloy surcharges, Taiwan kept prices unchanged, and China's market weakened on sluggish demand and falling nickel prices. The Indian market is expected to remain subdued unless demand improves and nickel prices stabilise.

Chinese ferro chrome market under pressure: China's ferro chrome market remained weak during the week as prices slipped slightly due to poor stainless steel demand and ample supply. High chrome ore inventories at ports and expectations of lower South African ore prices reduced raw material cost support. Lower power tariffs during the rainy season encouraged production restarts in southern China, while northern smelters continued operating steadily, keeping supply high.

Stainless steel mills remained cautious, with maintenance shutdowns and production cuts limiting ferro chrome consumption. Buyers purchased only for immediate needs, resulting in slow spot trading. Prices are expected to remain under pressure in the near term unless stainless steel demand improves and supply tightens.

Outlook

Indian ferro chrome prices are expected to remain largely stable in the coming week, supported by limited spot availability and ongoing export commitments. However, weak stainless steel demand, falling nickel prices, and continued pressure in the Chinese market may cap any upward movement. Market sentiment is likely to stay cautious until downstream demand improves.